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JPRS-UEA-87-037 
29  DECEMBER  1987 


055049 


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.JPRS  Report — 


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Economic  Affairs 


19980211  121 


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Soviet  Union 

Economic  Affairs 


JPRS-UEA-87-037  CONTENTS  29  DECEMBER  1987 

NATIONAL  ECONOMY 

MODELING,  ECONOMETRICS,  COMPUTERIZATION 

Modeling  of  Interbranch  Complex  Formation  Methodology  Proposed 
[Yu  Krivov:  VESTNIK  STATISTIKI.  No  9,  Sep  87]  . 1 

AGRICULTURE 

AGRO-ECONOMICS,  POLICY,  ORGANIZATION 

Family,  Private  Plot  Contract  Application  Proposed 
[EKONOMIKA  SELSKOGO  KHOZYA  YSTVA  No  8,  Aug  87]  . 9 

TRANSPORTATION 

CIVIL  AVIATION 

Discussion,  Diagrams  of  Wide-Body  11-96-300 

[A.  Shakhnovich;  KRYLYA  RODINY,  No  7,  Jul  87]  . 13 

RAIL  SYSTEMS 

Rail  System  Semi-Annual  Plan  Fulfillment  . 18 


JPRS-UEA-87-037 
29  December  1987 


NATIONAL  ECONOMY 


1 


MODELING,  ECONOMETRICS, 
COMPUTERIZATION 


Modeling  of  Interbranch  Complex  Formation 
Methodology  Proposed 

18200007  Moscow  VESTNIK  STATISTIKI  in  Russian 
No  9,  Sep  87 pp  24^33 

[Article  by  Yu.  Krivov:  “Aspect  of  Using  the  Input- 
Output  Balance  as  the  Basis  for  Studying  Formation  of 
Complexes”] 

[Text]  Under  present  conditions  increasing  the  degree  of 
intensification  of  the  economy  depends  to  a  considerable 
extent  on  optimum  decisions  in  the  realm  of  structural 
policy,  decisions  aimed  at  attaining  the  highest  end 
results  from  the  standpoint  of  the  national  economy. 
Effectiveness  in  implementing  those  decisions  is  largely 
determined  by  the  factor  related  to  the  compatibility  and 
balance  of  sectoral  production  structures.  Economists 
have  accordingly  been  more  interested  in  recent  years  in 
problems  of  analyzing  the  structure  of  intersector  com¬ 
plexes.  The  transition  to  target-program  methods  of 
planning  has  posed  for  planning  agencies  many  problems 
of  a  methodological  nature  whose  solution  is  crucial  to 
the  economic  results  from  the  functioning  of  the  partic¬ 
ular  intersector  systems. 

In  the  context  of  the  growing  scale  of  social  production, 
its  ever  deeper  specialization,  and  the  development  of 
intersector  production  relations  on  that  basis,  the  forma¬ 
tion  of  intersector  complexes  is  a  natural  economic 
process.  At  the  present  time  this  process  is  being  rein¬ 
forced  by  corresponding  organizational  structures.  For 
instance,  USSR  Gosagroprom  embraces  more  of  the 
agroindustrial  complex;  USSR  Gosstroy  embraces  a  siz¬ 
able  portion  of  the  construction  complex,  within  the 
USSR  Council  of  Ministers  bureaus  have  been  created 
for  machinebuilding,  for  the  fuel  and  energy  complex, 
and  for  social  development.  The  new  intersector  man¬ 
agement  components  have  been  created  as  a  rule  on  the 
basis  of  existing  organizational  structures.  At  the  same 
time  the  process  whereby  intersector  relations  in  the 
national  economy  become  deeper  and  more  complicated 
is  continuous  in  nature,  and  it  requires  a  thorou^  study 
using  nontraditional  methodological  approaches  and  the 
up-to-date  methods  of  mathematical  economics.  The 
present  article  contains  the  author’s  recommendations 
on  the  use  of  retrospective  intersector  balances  in  ana¬ 
lyzing  the  composition  and  boundaries  of  intersector 
complexes. 

The  process  of  the  formation  of  the  complexes  and  the 
structure  of  basic  intra-  and  intercomplex  relations  can 
be  represented  in  the  form  of  a  block  diagram.  On  that 
diagram  physical  production  is  broken  up  into  its  three 
basic  stages.  In  the  first  stage  all  production  is  directly 
related  to  the  development  and  exploitation  of  natural 
resources,  the  initial  raw  material  and  supplies  are 
extracted  or  produced,  and  there  are  practically  no 


intersector  relations.  But  each  of  the  sectors  given  sepa¬ 
rately  on  the  diagram  represents  a  nucleus  around  which 
national  economic  complexes  are  formed  in  the  next 
stage  of  production.  That  is  why  it  is  quite  allowable  to 
refer  to  the  sectors  in  the  first  stage  as  the  “nuclei  of  the 
complexes.” 


In  the  second  stage  of  production  the  initial  raw  material 
is  turned  into  intermediate  products.  It  is  here  that  the 
process  of  the  formation  of  complexes  and  development 
of  intra-  and  intercomplex  relations  takes  place.  In  this 
stage  six  groups  of  sectors  are  brought  together  on  the 
principle  of  the  “nucleus  of  the  complex,”  In  addition, 
four  groups  of  sectors  can  be  unified  in  a  single  macro¬ 
complex  “Secondary  and  Structural  Materials”  on  the 
basis  of  the  degree  of  finishing  of  their  products  and  the 
direction  of  their  subsequent  use.  Among  the  peculiar 
features  of  this  stage  of  production  we  should  single  out 
the  high  level  of  intensification  of  intercomplex  relations 
of  the  fuel-and-energy  complex  and  chemical  complex 
and  the  relative  separateness  of  the  four  other  intersector 
formations. 


The  third  stage  is  represented  by  two  macrocomplexes 
producing  a  finished  product:  the  investment  complex 
and  the  consumer  goods  complex.  In  these  stages  the 
relation  between  the  original  raw  material  and  the  end 
product  produced  from  it  is  lost  for  many  sectors.  There 
is  an  exception  in  the  product  of  the  construction  com¬ 
plex  and  agroindustrial  complex,  in  whose  production 
cycle  the  connection  between  the  initial  raw  material  and 
the  finished  products  for  consumption  is  rather  obvious. 
To  some  extent  this  relation  can  also  be  traced  for 
certain  other  sectors. 


But  it  is  preferable,  in  our  opinion,  for  the  sectors  in  the 
third  stage  of  production  to  be  divided  according  to  the 
basic  final  needs  of  the  national  economy.  One  of  the 
possible  versions  for  the  detailed  breakdown  of  use  of  the 
end  product  by  purposes  is  represented  in  the  fourth 
stage  on  the  diagram.  Since  each  of  these  purposes 
expresses  a  certain  need  that  serves  as  the  purpose  for  the 
functioning  of  the  economy  and  the  group  of  sectors 
satisfying  that  need  (the  sectors  directly  related  to  that 
purpose)  along  with  sectors  supplying  them  with  means 
of  production,  comprises  a  purposive  national  economic 
complex. 


Thus  the  initial  points  of  departure  in  studying  the 
processes  whereby  complexes  are  formed  may  either  be 
the  sectors  producing  the  initial  raw  material  (the  “nu¬ 
clei  of  the  complexes”)  or  the  specialized  orientation  of 
the  use  of  the  end  product  (“objectives  of  the  complex¬ 
es”).  It  makes  sense  on  this  basis  to  single  out  two  basic 
principles  for  breaking  down  the  national  economy  into 
intersector  complexes:  the  principle  of  the  “nucleus  of 
the  complex”  and  the  principle  of  the  “purpose  of  the 
complex.” 


JPRS-UEA-87-037 
29  December  1987 


2 


NATIONAL  ECONOMY 


Key: 

I .  Primary  raw  material  and  supplies  2.  Nonmineral  raw  materials  for  building  materials  3.  Mining  ans  chemical 
raw  materials  4.  Metallic  ores  5.  Timbering  6.  Primary  energy  carriers  7.  Agricultural  raw  materials 
8.  Procurementsw  9,  Freight  transportation  and  communications  10.  Material  and  technical  supply  and  sales 

I I .  Secondary  and  structural  material  1 2.  Secondary  energy  carriers  1 3.  Primary  processing  of  agricultural  raw 
materials  1 4.  Building  materials  complex  (KS)  1 5.  Chemical  complexes  (KhK)  1 6.  Metallurgical  complex  (MK) 
1 7.  Wood  productss  complex  (LPK)  1 8.  Fuel  and  energy  complex  (PEK)  1 9.  Agroindustrial  goods  and  services  for 
the  public  22.  Capital  construction  (SK)  23.  Machine  building  24.  Furniture  25,  Durable  consumer  goods, 
housewares,  and  household  chemical  products  26.  Finished  products  from  agricultural  raw  materials  (APK) 
27.  Trade  and  the  food  service  industry  28.  Imports  29.  For  Department  I  30.  For  Department  II  31.  For 
nonproduction  purposes  32.  Administration,  defense  33.  Science  and  specialized  education  34.  Free  35.  Paid 
36.  Durable  consumer  goods  37.  Housewares,  sporting  goods,  and  household  chemical  products  38.  Clothing, 
footwear  39.  Food  40.  Exmports  4 1 .  For  production  purposes  42.  Services  for  the  public  43.  Accumulation 
and  replenshment  of  stocks  44.  Social  consumption 


JPRS-UEA-87-037 
29  December  1987 


3 


NATIONAL  ECONOMY 


Selection  of  the  point  of  departure  depends  entirely 
on  the  purposes  of  the  study.  (See  graphic  on  page  2.) 
The  principle  of  the  “nucleus”  in  the  formation  of 
complexes  is  widely  used:  specifically  in  analyzing  the 
adequacy  of  supply  of  the  national  economy  with 
scarce  raw  materials,  the  influence  of  the  variation  in 
the  volume  of  its  production  on  performance  of 
particular  final  objectives  of  economic  developments, 
discovery  of  the  principal  directions  for  conservation 
of  that  raw  material,  efficiency  of  application  of 
progressive  technology  for  conserving  that  resource 
by  its  principal  consumers,  and  so  on.  The  principle 
of  the  “objective”  in  the  formation  of  complexes 
makes  it  possible  to  identify  sectors  that  are  taking 
direct  part  in  satisfying  particular  final  needs  of  the 
national  economy,  their  role  in  attaining  the  general 
purpose  of  production,  the  economic  relations  among 
partners  in  the  complex,  and  a  number  of  other 
matters.  It  is  obvious  that  in  its  economic  nature  the 
principle  of  “objective”  corresponds  more  to  those 
tasks  of  economic  policy  which  the  party  is  setting  for 
the  country’s  national  economy  in  the  present  stage. 
In  the  study  of  the  processes  of  formation  of  com¬ 
plexes  one  of  the  central  questions  is  that  of  methods 
of  evaluating  their  performance.  Most  economists 
believe  that  the  indicator  of  the  complex’s  end  prod¬ 
uct  must  be  used  as  the  principal  criterion  in  evalu¬ 
ating  the  results  of  production.  But  the  composition 
of  this  indicator  is  not  always  treated  the  same  way  by 
any  means.  In  our  opinion,  two  methods  of  comput¬ 
ing  the  final  product  of  the  complex  correspond  to  the 
two  principles  of  formation  of  complexes.  When  the 
principle  of  the  “nucleus”  is  used,  it  is  advisable  to 
use  the  indicator  of  the  end  product  that  is  calculated 
by  the  sectoral  method,  i.e.,  as  the  value  of  the  output 
of  the  complex  minus  material  costs  within  the  com¬ 
plex.  The  end  product  calculated  by  the  national 
economic  method,  i.e.,  as  the  value  of  the  output  of 
the  complex  which  falls  outside  the  limits  of  current 
consumption  in  production,  best  corresponds  to  the 
principle  of  the  “objective.” 

The  end  product  of  any  complex  of  the  national 
economy  consists  of  two  parts  which  differ  in  their 
economic  content — the  portion  which  goes  to  serve 
the  objective  and  the  portion  which  goes  for  repro¬ 
duction.  The  first  of  them  characterizes  the  level  of 
satisfaction  of  the  need  of  the  national  economy  for 
the  product  of  the  complex,  while  the  second  supple¬ 
ments  this  description  with  the  conditions  for 
expanded  reproduction  of  the  sectors  in  the  complex. 
A  line  of  demarcation  needs  to  be  drawn  between 
these  two  parts  of  the  end  product  of  the  complexes 
because  the  question  of  the  functional  efficiency  of  a 
particular  complex  can  be  settled  only  on  the  basis  of 
computation  of  the  end  product  expressing  its  payoff 


function.  Determination  of  efficiency  on  the  basis  of 
both  components  of  the  complex’s  end  product  can 
seriously  distort  the  results,  since  the  volume  of  the 
end  product  may  increase  thanks  to  an  accumulation 
of  resources  and  subjects  of  labor  for  the  branches  of 
the  complex,  while  the  production  of  its  products 
destined  for  satisfying  its  particular  needs  of  the 
national  economy  has  been  stable  or  has  dropped  off. 
In  economic  practice  there  have  been  quite  a  few  such 
trends  in  development  of  intersector  complexes. 

The  existence  of  the  two  points  of  departure  in  studying 
the  processes  of  formation  of  complexes  makes  it  neces¬ 
sary  to  work  out  specific  methods  of  breaking  down  the 
national  economy  into  intersector  complexes. 

The  method  based  on  selecting  from  the  block  of 
sectors  in  the  first  stage  of  production  the  sectors  of 
the  “nucleus  of  the  complex”  and  on  using  some 
algorithm  to  identify  those  processing  or  manufactur¬ 
ing  sectors  in  the  second  stage  of  production  that  are 
most  closely  related  to  this  “nucleus”  as  well  as  its 
role  in  furnishing  physical  resources  to  the  intersector 
complexes  in  the  third  stage  of  production  corre¬ 
sponds  to  the  principle  of  the  “nucleus  of  the  com¬ 
plex.” 

This  method  is  being  used  effectively  at  the  present 
time  by  most  researchers.  The  research  is  conducted 
as  a  rule  on  the  basis  of  an  intersector  balance.  The 
coefficients  of  the  intersector  distribution  of  products 
are  used  as  the  criterion  of  the  connection: 

hjj  -  Xij/Xj, 

in  which  Xjj — volume  of  delivery  of  the  product  of  the 
i-th  sector-supplier  to  the  j-th  sector-consumer; 

Xj — total  volume  of  production  of  the  product  of  the  i-th 
sector-supplier. 

The  process  of  finding  the  most  essential  connections 
with  this  method  of  investigation  is  iterative  in 
nature.(l) 

In  our  opinion,  it  is  preferable  to  use  coefficients  of 
full  material  costs  for  these  purposes.  First  of  all,  they 
embrace  the  entire  system  of  direct  and  indirect 
intersector  relations;  second,  they  are  more  stable  in 
dynamic  terms  than  the  intersector  flows  and  the 
coefficients  of  direct  inputs  and  distribution;  third, 
they  express  the  direct  relation  between  the  volume  of 
production  and  the  end  results  for  the  national  econ¬ 
omy.  But  even  the  coefficients  of  full  costs  are  essen¬ 
tially  differentiated  by  sectors  and  by  regions  within  a 
single  sector,  and  they  are  also  subject  to  fluctuations 
from  year  to  year  under  the  impact  of  various  factors. 


JPRS-UEA-87-037 
29  December  1987 


The  following  relationships,  which  we  call  coefYicients 
of  intersector  compatibility  (kompleksirovaniye)  (Kj) 
are  more  stable  and  comparable  from  the  dynamic, 
intersector,  and  regional  viewpoints:(2) 

Kj  =  bij/Zbij  :  bjj/Zbij  »  bij/bjj 

%  =  bij/Zbij  :  bii/Zbij  =  bij/bii* 

in  which  b^ — nondiagonal  coefficients  of  full  material 
costs  of  the  i-th  sector  in  production  of  the  end  product 
of  the  j-th  sector; 

bjj  and  b,, — diagonal  coefficients  of  full  material  costs 
within  the  sector  to  produce  the  end  product  of  the  j-th 
and  i-th  sectors,  respectively. 

On  the  basis  of  the  formulas  given,  the  first  indicator  is 
obtained  by  dividing  the  elements  of  the  column  of  the 
matrix  of  coefficients  of  full  costs  by  the  diagonal  ele¬ 
ment  of  that  column,  and  the  second  is  obtained  by 
dividing  the  elements  of  the  row  of  the  same  matrix  by 
the  diagonal  element  of  that  row.  Both  indicators  reflect 
the  relation  between  the  unit  of  the  end  product,  i.e.,  the 
higher  Kj  or  Kj,  the  more  substantial  is  the  contribution 


4  NATIONAL  ECONOMY 

of  the  sector-supplier.  Here  Kj  corresponds  to  the  phys¬ 
ical  aspect  and  Kj  the  value  aspect  of  relations  between 
the  suppliers  and  consumers  of  the  product. 

An  analysis  of  the  process  of  formation  of  complexes 
begins  with  the  “nucleus  of  the  complex”  and  is  iterative 
in  nature.  In  the  first  stage  those  sectors  are  selected 
which  are  the  largest  consumers  of  the  product  of  the 
primary  processing  of  the  “nucleus,”  and  so  on. 

It  is  also  advisable  to  apply  these  coefficients  in  analyz¬ 
ing  the  regional  specialization  of  national  economic 
complexes.  It  is  a  peculiarity  of  regional  intersector 
complexes  that  a  given  region  may  enter  into  exchange 
with  other  regions  of  the  country  not  only  the  initial  raw 
material  and  intermediate  products,  but  also  the  end 
products  of  a  particular  complex.  The  magnitude  of  the 
coefficients  of  intersector  compatibility  in  various  stages 
of  production  varies  substantially  as  a  function  of  this 
aspect.  That  is  why  interregional  comparison  of  the 
coefficients  may  give  a  sufficiently  complete  idea  about 
the  specialization  of  a  complex  in  a  regional  breakdown. 
This  is  confirmed  by  the  figures  in  Table  1,  where  the 
relation  between  the  full  costs  of  the  product  of  cropping 
in  particular  processing  sectors  of  industry  and  the 
consumption  of  the  products  of  cropping  within  the 
sector  (Kj)  is  given  for  certain  regions  of  the  country. 


Table  1 


Sectors  Processing  Products  of  Cropping 

1 

2 

Number  of  Region 

3 

4 

5 

Cotton 

0.004 

0.828 

0.011 

0.005 

0.696 

Winemaking 

0.053 

0.417 

0.389TC0.265 

0.152 

Fruit  and  vegetable 

0.333 

0.724 

0.567 

0.582 

0.455 

Milling  and  rolling 

0.774 

0.657 

0.686 

0.453 

0.681 

The  figures  in  Table  I  show  in  particular  that  the  cotton 
grown  in  Regions  2  and  5  goes  through  primary  process¬ 
ing  at  cotton  gins  located  in  the  same  region.  Moreover, 
the  level  of  the  coefficient  indicates  that  production  in 
Region  5  depends  to  a  lesser  degree  on  the  value  of  the 
agricultural  raw  material  and  is  correspondingly  more 
oriented  than  Region  2  toward  the  manufacturing  of 
finished  fabrics.  The  three  other  regions  obviously  do 
not  have  their  own  cotton  ginning  industry.  At  the  same 
time.  Region  1,  for  example,  is  the  largest  producer  of 
finished  cotton  fabrics,  but  their  production  has  practi¬ 
cally  no  connection  to  its  agriculture,  and  the  raw 
material  for  the  cotton  industry  of  Region  1  is  supplied 
from  other  regions  of  the  country.  Thus  the  coefficients 
of  intersector  compatibility  reflect  the  territorial  divi¬ 
sion  of  labor  that  has  taken  place  in  the  country’s  cotton 
complex. 

An  analogous  analysis  can  be  made  in  a  regional  break¬ 
down  for  other  sectors  as  well. 

This  method  fully  embraces  the  movement  of  physical 
product  flows.  But  it  does  not  afford  the  possibility  of 


identifying  sectors  that  furnish  the  intersector  complex 
its  basic  production  stocks,  i.e.,  the  sectors  building  up 
stocks.  For  these  purposes  we  can  use  the  intersector 
balance  of  fixed  capital,  in  particular,  coefficients  of  the 
full  capital  intensiveness  for  the  particular  aspects  of 
fixed  capital.  Since  full  capital  intensiveness  of  the 
product  is  proportional  to  its  full  materials  intensive¬ 
ness,  this  method  is  based  on  the  previous  one  and 
supplements  it.  In  addition,  here  we  are  establishing  the 
direct  relation  between  the  sectors  supplying  stocks,  the 
“nucleus  of  the  complex,”  and  sectors  producing  end 
products  from  the  primary  raw  material.  For  the  pur¬ 
poses  of  such  an  analysis  we  select  the  type  of  capital  that 
is  the  main  type  for  the  “nucleus  of  the  complex”  (in  the 
APK,  for  example,  tractors  and  agricultural  machines, 
and  then  we  identify  sectors  that  have  the  highest  level  of 
full  capital  intensiveness  with  respect  to  that  type  of 
fixed  capital.  Since  direct  capital  intensiveness  withre- 
spect  to  the  capital  of  the  “nucleus  of  the  complex”  in  the 
processing  sectors  is  not  high  as  a  rule,  a  substantial 
magnitude  of  full  capital  intensiveness  for  that  type  of 


NATIONAL  ECONOMY 


JPRS-UEA-87-037 
29  December  1987 


Table  2  (in  rubles  per  1,000  rubles  of  output) 


Full  Capital  Inlensiveness  of  Tractors  and  Agricultural  Machines 

1972  1977 


Branches  of  Industry  1966 

Woolen  49.42 

Sugar  72.07 

Fruit  and  vegetable  73.50 

Meat  202.70 

Dairy  131.80 

Milling  and  rolling  123.90 


65.08 

81.48 

66.04 

108.73 

75.84 

92.90 

276.01 

323.90 

161.38 

216.83 

152.77 

184.48 

capital  provides  the  basis  for  bringing  together  the  cap¬ 
ital-forming  and  processing  sectors  identified  to  create  a 
complex  bound  up  with  this  “nucleus.”  To  illustrate,  we 
will  give  figures  on  the  dynamics  of  full  capital  inten¬ 
siveness  for  tractors  and  agricultural  machines  in  certain 
branches  of  industry  processing  agricultural  raw  materi¬ 
als  in  one  of  the  country’s  economic  regions  (Table  2). 

It  is  evident  from  the  figures  given  in  Table  2  that  the  full 
capital  intensiveness  of  tractors  and  agricultural  machines 
has  increased  in  all  the  branches  of  industry  processing 
agricultural  raw  materials.  Even  the  extremely  bad  weather 
conditions  for  agriculture  in  1 972  had  little  influence  on  this 
process.  At  the  same  time,  the  rise  in  the  capital  intensive¬ 
ness  in  processing  branches  exceeded  by  1.5-2-fold  its 
growth  in  agriculture,  which  indicates  intensification  of 
integrational  processes  in  the  agroindustrial  complex. 

Thus  the  matrices  of  coefficients  of  full  costs  of  the 
intersector  balances  of  the  social  product  and  of  fixed 
capital  allow  us  to  study  thorou^ly  the  closeness  of 
intersector  production  relations,  to  divide  up  the 
national  economy  into  blocks  of  interrelated  sectorson 
the  basis  of  the  principle  of  the  “nucleus  of  thecomplex,” 
and  to  analyze  the  directions  in  specialization  of  regional 
intersector  systems  and  other  aspects  of  the  formation  of 
complexes. 


The  study  of  intersector  complexes  on  the  principle  of 
the  “objective”  is  based  on  using  as  the  criteria  of 
their  formation  the  purposes  in  the  national  econoiny 
for  which  the  end  product  is  used.  This  approach,  in 
our  opinion,  is  most  appropriate  to  the  period  of 
restructuring  the  economy  in  the  direction  of  an 
intensive  development  strategy  and  attainment  of 
high  end  results  from  the  standpoint  of  the  national 
economy. 

There  are  several  stages  in  the  algorithm  to  deter¬ 
mine  the  sectoral  composition  and  volume  of  out¬ 
put  of  complexes.  Depending  on  the  problems  of  the 
study,  in  the  initial  stage  consumption  funds  and 
funds  for  nonproduction  consumption  of  the  end 
product  are  divided  among  several  purposes.  One  of 
the  examples  of  this  kind  of  division  is  given  in  the 
block  diagram.  The  physical  form  of  each  of  the 
purposes  may  be  represented  in  this  case  in  the  form 
of  a  group  of  specialized  branches  expressing  the 
end  result  of  the  functioning  of  the  particular 
complex.(3) 

In  the  next  stage  the  sector-claimants  producing  subjects 
of  labor  for  the  specialized  part  to  the  end  product  of  this 
complex  are  identified.  The  calculation  is  made  accord¬ 
ing  to  this  formula 


X|  -  (E  -  A)-lZk.,  (1) 

in  which  X^—— vector  of  the  volume  of  gross  product  required  to  realize 
the  k-th  specialized  result  of  production; 

— vector  of  the  volume  of  the  end  product  characterizing  the 
result  in  fulfilling  the  specific  purpose; 

(E  -  A)”^ — ^matrix  of  coefficients  of  full  material  costs. 


JPRS-UEA-87-037 
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NATIONAL  ECONOMY 


6 


ojf  -  !  X|/X,  (2) 

In  Khlch  Xj[^— nolumn  o£  production  o£  the  1-th  sector  expended  In 

production  of  that  portion  of  the  end  product  of  the  k-th 

complex  that  goes  to  serve  the  objective; 

total  volume  of  gross  output  of  the  1-th  sector; 

X| — ^volume  of  the  gross  social  product  expended  to  produce  the 
portion  of  the  end  product  of  the  k-th  complex  that  goes 
to  serve  the  objective; 

X— total  volume  of  the  gross  social  product. 

The  sector-claljDant  belongs  In  the  given  complex  if  ct£  >  1, 


xg  =  (E  -  A)-lNk,  (3) 

in  which  — ^vector  of  the  volume  of  gross  product  necessary  for 

expanded  reproduction  of  the  k-th  specialized  complex; 

Nk — vector  of  accumulation  and  replacement  of  retirement  of 
fixed  capital  of  sectors  Included  In  the  k-th  complex  In 
the  previous  stage. 

The  coefficient  for  sectors  not  Included  In  the  complex  In  the  first 
stage  Is  calculated  once  again  for  final  determination  of  the  makeup  of 
the  complex: 


^i  =  :  (x^  +  xi[)/x. 


This  calculation  yields  the  volume  of  output  of  the  gross 
product  of  various  sectors  to  produce  that  portion  of  the 
end  product  of  the  complex  being  studied  which  serves 
its  particular  purpose.  Sectors  directly  related  to  this 
complex  are  determined  according  to  Formula  (2)  above. 

Capital-forming  sectors  are  selected  to  study  the  repro¬ 
ductive  aspects  of  the  functioning  of  the  complex  for  the 
set  of  sectors  singled  out  in  the  second  stage.  For  the 
sectors  included  in  the  comlex  the  volume  and  physical 
composition  of  accumulation  and  replacement  of  retire¬ 
ment  of  fixed  capital  are  calculated  along  with  the 
growth  of  the  elements  of  working  capital. 

Then  we  compute  the  volume  of  the  gross  output  of  the 
sector  that  goes  to  maintain  existing  capacities  and  to 
expand  the  production  of  the  product  of  the  complex, 
using  Formula  (3)  above. 


In  the  final  stage  the  resource-producing,  processing,  and 
capital-forming  sectors  are  brought  together  to  comprise 
the  unified  intersector  complex. 


Since  a  particular  sector  may  be  assigned  to  only  one  of 
the  intersector  complexes,  it  is  advisable  for  division  of 
the  national  economy  into  complexes  to  begin  with- 
breaking  down  the  end  product  among  the  most  impor¬ 
tant  directions  of  use  and  then  moving  on  to  the  iterative 
process  we  have  described.  This  approach  makes  it 
possible  in  each  iteration  to  compare  the  share  of  the 
gross  output  that  pertains  to  the  various  complexes.  Here 
the  decision  to  place  the  i-th  branch  in  the  k-th  complex 
is  taken  only  if 


3^  >  ef  >  . . .  >  Bf 

(k,  r,  s — numbers  of  complexes). 

We  have  used  the  methodological  principles  set  forth  in 
calculations  of  the  principal  indicators  of  the  agroindus¬ 
trial  complex  of  one  of  the  economic  regions  of  RSFSR 
on  the  basis  of  the  intersector  balance. 

It  is  well  known  that  the  functional  purpose  of  the  APK 
is  the  fullest  satisfaction  of  the  needs  of  the  public  for 
foodstuffs,  clothing,  footwear,  and  other  consumer  goods 


JPRS-UEA-87-037 
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NATIONAL  ECONOMY 


7 


derived  from  agricultural  raw  materials.  On  the  basis  of 
this  definition  all  the  sectors  of  light  industry  and  the 
food  industry  and  also  agriculture  for  the  following 
directions  of  use  of  the  end  product:  personal  and  social 
consumption,  exports  to  other  republics,  and  other 
expenditures. 

These  elements  made  up  the  portion  of  the  end  product 
of  the  APK  related  to  its  specific  purpose.  In  the  next 
stage  accumulations  of  fixed  and  working  capital, 
replacement  of  fixed  capital  retired,  and  major  repairs  of 
fixed  capital,  i.e.,  the  portion  of  the  end  product  of  the 
APK  that  goes  for  reproduction,  were  calculated  for 
these  sectors.  For  purposes  of  comparison  an  analogous 
calculation  was  made  in  accordance  with  the  method 
and  the  sectoral  makeup  adopted  in  USSR  Goskomstat. 
The  structural  characteristics  of  the  end  product  calcu¬ 
lated  by  the  two  methods  are  given  (in  percentages)  in 
Table  3, 

It  is  evident  from  the  figures  in  Table  3  that  in  the 
structure  of  the  end  product  calculated  according  to  the 
proposed  method  the  share  of  the  portion  for  the  spe¬ 
cialized  purpose,  taking  exports  into  account,  amounted 
to  82.1  percent  of  its  total  volume,  or  3.3  percentage 
points  more  than  according  to  the  accepted  method.  The 
share  of  the  output  of  the  complex  in  the  total  volume  of 
the  end  product  and  especially  in  the  consumption  fund 
is  considerably  higher  (by  21  points).  In  other  words,  the 
proposed  method  reflects  more  vividly  the  specific  ori¬ 
entation  of  the  APK  toward  an  objective  and  its  role  in 
the  republic’s  economy. 


On  the  whole,  the  volume  of  the  end  product  of  a 
complex  calculated  according  to  the  method  proposed  is 
37  percent  higher  than  the  volume  computed  according 
to  the  accepted  method,  including  a  39-percent  differ¬ 
ence  for  the  portion  applied  to  the  specific  purpose,  16 
percent  for  the  reproductive  portion,  and  2.2-fold  for 
exports. 


In  the  last  stage,  after  the  matrix  of  coefficients  of  full 
material  costs  has  been  multiplied  by  the  vector  of  the 
end  product  of  the  complex,  the  final  sectoral  composi¬ 
tion  of  the  APK  was  determined.  The  calculation  showed 
that  on  the  average  about  a  fourth  of  the  value  of  the 
output  in  the  complex  went  for  production  of  the  end 
product  of  the  sectors  of  the  complex  related  to  the 
particular  purpose  and  to  their  expanded  reproduction. 
This  level  was  exceeded  only  by  a  small  portion  of  the 
sectors,  and  they  were  included  in  the  composition  of  the 
first  sphere  of  the  APK.  By  contrast  with  the  accepted 
sectoral  composition,  production  of  wooden  and  paper 
containers,  chemical  fibers  and  filament  (as  a  resource 
supplementing  agricultural  raw  materials  for  light  indus¬ 
try),  and  equipment  for  light  industry  were  included  in 
the  complex.  All  of  these  sectors  were  included  only  in 
the  volume  of  deliveries  of  output  to  the  complex.  In 
addition,  by  contrast  with  the  accepted  method,  the 
volume  of  capital  construction  was  reduced  by  the  value 
of  construction  of  facilities  in  the  first  sphere  of  the  APK 
and  rural  construction  of  nonproduction  projects.  Tim¬ 
ber  and  lumber  is  an  industry  that  was  left  out  of  the 
complex  since  it  has  no  relations  with  it. 


Table  3 

Relative  Share  of  Output  of  APK  in  Structure  of  End  Product  of  APK 

Total  Volume  of  End  Product 


Indicator 

According  to 

By  Author’s 

According  to 

By  Author’s 

Accepted  Method 

Method 

Accepted  Method 

Method 

End  product  of 

APK-^  total 

Breakdown: 

34 

47 

lOO.O 

100.0 

Consumption  fund 
(portion  of  end 
product  that  goes 
for  particular  pur¬ 
pose) 

54 

75 

74.2 

75.2 

Funds  for  accumu¬ 
lation  and  replace¬ 
ment  of  retired 
assets  (portion  of 
end  products  for 
reproduction) 

Further 

breakdown: 

20 

23 

21.2 

17.9 

For  first  sphere  of 

APK 

42 

— 

1.5 

— 

For  second  sphere 
of  APK 

99 

99 

12.6 

9.2 

JPRS-UEA-87-037 
29  December  1987 


8 


NATIONAL  ECONOMY 


Table  3 


Relative  Share  of  Output  of  APK  in  Total  Vol-  Structure  of  End  Product  of  APK 

ume  of  End  Product 


Indicator 

According  to 

Accepted  Method 

By  Author’s 
Method 

According  to 
Accepted  Method 

By  Author’s 
Method 

End  product  of 

APK —  total 

34 

47 

100.0 

100.0 

For  third  sphere 
of  APK 

85 

88 

6.3 

6.6 

For  APK  as  a 
whole 

86 

82 

20.4 

15.8 

For  sectors  not 
part  of  APK 

1 

4 

0.8 

2.1 

Export 

10 

20 

4.6 

6.9 

As  a  result  of  the  calculation  made  the  value  of  output  of 
the  complex  turned  out  to  be  33  percent  higher  than 
when  it  was  calculated  according  to  the  accepted  meth¬ 
od,  the  size  of  the  labor  force  was  23  percent  greater,  and 
the  value  of  fixed  productive  capital  was  23  percent 
greater. 

Thus  the  proposed  methodological  principles  and  meth¬ 
ods  procedures  make  it  possible  to  use  the  intersector 
balance  to  discover  the  most  stable  intersector  produc¬ 
tion  relations  and  to  make  a  comprehensive  study  of  the 
process  whereby  the  complexes  take  shape.  In  our  opin¬ 
ion,  it  will  help  to  increase  the  scientific  soundness  of  the 
structural  restructuring  of  the  economy  and  will  contrib¬ 
ute  to  more  thorough  work  on  the  comprehensive 
national  economic  target  programs. 

Footnotes 

1.  See,  for  example,  M.Ya.  Lemeshev  and  A.I.  Panchenko, 
“Kompleksnyye  programmy  planirovaniya  narodnogo 
khozyaystva”  [Comprehensive  National  Economic  Plan¬ 
ning  Program],  Moscow,  Ekonomika,  1973,  p  40. 


2.  The  coefficient  Kj  was  first  proposed  by  E,  Yershov, 
but  its  content  was  treated  differently.  See  E.B.  Yershov, 
“Mathematical  Methods  in  a  Static  Model  of  the  Inter- 
sector  Balance,”  in  the  book  “Metody  planirovaniya 
mezhotraslevykh  proportsiy”  [Methods  of  Planning 
Intersector  Proportions],  Moscow,  Ekonomika,  1965,  pp 
42-45. 


3.  V.M.  Masakov  has  also  recommended  that  the  group 
of  specialized  sectors  be  identified  in  the  initial  stage  of 
the  study,  but  the  algorithm  for  determining  the  sectoral 
composition  of  complexes  differs  fundamentally  from 
the  one  we  have  proposed.  See  V.M.Masakov,  “Sotsia- 
listicheskoye  proizvodstvo:  otraslevaya  struktura  i  dina- 
mika”  [Socialist  Production:  Sectoral  Structure  and 
Dynamic  Behavior],  Novosibirsk,  Nauka,  pp  30-34. 


COPYRIGHT:  Izdatelstvo  “Finansy  i  statistika”,  1987 


07045/08309 


JPRS-UEA-87-037 
29  December  1987 


AGRICULTURE 


9 


AGRO-ECONOMIC^  POLICY, 
ORGANIZATION 


Family,  Private  Plot  Contract  Application 
Proposed 

18240360  Moscow  EKONOMIKA  SELSKOGO 
KHOZYAYSTVA  in  Russian  No  8,  Aug  87 pp  90-95 

[Unattributed  material  under  the  rubric  “Official  Mate¬ 
rials”:  “Recommendation  for  the  Employment  of  the 
Family  and  Individual  Contract  in  Agriculture”] 

[Text]  Below  are  the  Recommendations  for  the  Employ¬ 
ment  of  the  Family  and  Individual  Contract  in  Agricul¬ 
ture  that  have  been  approved  by  the  USSR  State  Agro- 
Industrial  Committee  and  the  USSR  State  Committee  on 
Labor  and  Social  Problems  and  have  been  coordinated 
with  the  All-Union  Central  Trade-Union  Council 

1.  General  Provisions 

1.1.  The  family  and  individual  contract  can  be  employed 
on  kolkhozes,  sovkhozes  and  other  agricultural  enter¬ 
prises  in  all  sectors  of  agricultural  production. 

1.2.  Kolkhozes,  sovkhozes  and  other  agricultural  enter¬ 
prises  conclude  agreements  with  families  or  individual 
parties  for  the  production  of  products  or  the  fulfillment 
of  individual  agricultural  operations  (Supplement  1). 
The  agreement  is  signed  on  behalf  of  the  farm  adminis¬ 
tration  (customer)  by  the  manager  or  another  authorized 
official,  and  on  behalf  of  the  contractor  by  all  members 
of  the  family  that  are  taking  on  obligations  under  the 
agreement.  The  family  signifies  a  designated  contractor 
to  carry  out  mutual  relations  with  the  customer. 

1.3.  Kolkhozes,  sovkhozes  and  other  agricultural  enter¬ 
prises  conclude  agreements  for  family  and  individual 
contracts  with  the  workers  and  employees  of  other 
enterprises  and  organizations,  people  taking  courses  and 
students  when  they  have  a  certificate  of  release  from 
their  place  of  work  or  study  that  is  issued  by  a  commu¬ 
nal-housing  or  other  executive  committee  of  the  local 
Soviet  of  People’s  Deputies  in  the  place  of  residence. 
Kolkhozes  that  conclude  an  agreement  with  another 
farm  present  a  certificate  that  affirms  the  consent  of  the 
board  of  the  farm  for  travel  to  work  at  other  farms. 

1.4.  The  assignment  of  the  fulfillment  of  the  work 
stipulated  by  the  agreement  to  outside  parties,  enter¬ 
prises  or  organizations  is  not  permitted. 

2.  Contractual  Obligations 

2.1.  An  agreement  for  a  family  (individual)  contract  can 
be  concluded  for  the  production  of  agricultural  products 
and  the  fulfillment  of  certain  types  of  work. 

2.2.  The  amount  of  products  (work)  produced  is  deter¬ 
mined  by  the  customer  in  concert  with  the  executors. 


2.3.  Material  and  technical  supply  for  the  executor  will 
be  carried  out  by  the  customer.  The  customer  herein  can 
allocate  and  secure  for  the  executor  during  the  effective 
period  of  the  agreement  for  the  fulfillment  of  the  pro¬ 
duction  program  envisaged  in  the  agreement:  individual 
plots  of  land,  crops  (plantings),  hayflelds,  pastures  and 
other  types  of  land;  full  crop  rotation;  multi-year  plant¬ 
ing;  livestock;  animal-husbandry  and  other  productive 
accommodations;  tractors,  trucks,  other  agricultural 
technology  and  equipment  and  sowing  and  planting 
material;  feeds;  fertilizers;  pesticides  and  chemicals; 
implements,  fuels,  lubricants  and  other  materials  essen¬ 
tial  to  fulfill  the  assignment. 

2.4.  The  cost  of  the  material  and  technical  resources  is 
determined  in  prices  and  by  a  procedure  stipulated  in  the 
contract. 

2.5.  The  contractor  may  make  use  any  structures,  tools 
and  transport  belonging  to  him  to  fulfill  the  production 
program.  The  farm,  where  necessary,  renders  him  assis¬ 
tance  under  established  procedure  in  the  construction 
and  equipping  of  accommodations  for  the  maintenance 
of  livestock  and  poultry;  allots  transport  and  technical 
equipment;  renders  services  in  cultivating  the  plot  of 
land  and  the  procurement  and  delivery  of  feeds;  and, 
provides  veterinary  support  for  the  livestock  and  poultry 
that  are  handed  over  for  upkeep  using  his  own  manpow¬ 
er.  The  farm,  at  the  request  of  the  contractor,  grants  him 
an  advance  through  USSR  Gosbank  credit  for  acquiring 
materials  and  small-scale  mechanization  equipment 
essential  for  production.  Materials  allotted  by  the  cus¬ 
tomer  and  the  cost  of  services  are  paid  for  by  the 
customer. 

3.  Material  Incentives 

3.1.  Compensation  for  the  labor  of  the  contractor  is 
made  by  the  customer  in  the  form  of  payments  for 
products  produced  or  work  fulfilled  or  in  the  form  of 
procurements  of  the  products  produced  by  the  contrac¬ 
tor.  The  form  and  size  of  the  compensation  is  stipulated 
in  the  agreement. 

3.2.  Payments  for  the  products  of  cultivation  and  animal 
husbandry  can  be  made:  according  to  valuations  per  unit 
(value)  of  the  product  produced  with  a  regard  for  its 
quality  and  delivery  deadlines,  according  to  standards 
(valuations)  for  the  gross  income  received  by  the  con¬ 
tractor  or  according  to  the  standard  cost  of  the  products 
produced.  Payment  in  kind  is  made  under  a  procedure 
established  by  existing  provisions. 

3.3.  The  standard  product  cost  includes  the  value  of  all 
material  expenditures,  customer  services  and  the  wage 
payments  fund.  The  wage  payment  fund  is  calculated  in 
accordance  with  the  procedure  stipulated  for  permanent 
sovkhoz  workers  according  to  the  provisions  of  wage 
payments  approved  on  kolkhozes.  The  value  of  material 
resources  is  determined  according  to  plan  accounting 
prices. 


JPRS-UEA-87-037 
29  December  1987 


10 


AGRICULTURE 


The  standard  cost  is  used  to  determine  the  total  value  of 
the  agricultural  products  produced  and  given  over  to  the 
customer.  The  difference  between  this  amount  and  the 
value  of  the  material  expenditures  made  and  services 
rendered  is  paid  to  the  contractor  as  compensation  for 
the  ultimate  results  of  labor. 

3.4.  Compensation  in  the  form  of  procurements  of 
products  produced  is  employed  in  calculations  with  the 
contractors  with  which  the  ratio  is  established  for  the 
“Standard  Agreement  for  the  Cultivation  in  the  Private 
Subsidiary  Plots  of  Citizens  of  Livestock  and  Poultry 
Belonging  to  the  Kolkhozes,  Sovkhozes  and  Other  Agri¬ 
cultural  Enterprises”  as  approved  by  USSR  Minselkhoz 
[Ministry  of  Agriculture],  USSR  Minfin  [Ministry  of 
Finance],  USSR  Minzag  [Ministo^  of  Grain  Products] 
and  the  USSR  TsSU  [Central  Statistical  Administration] 
of  12  Mar  81,  Nos  151-6. 

3.5.  Before  the  calculations  for  the  products,  the  contrac¬ 
tor  may  be  paid  an  advance  against  the  payments  for  the 
ultimate  results  of  the  work.  The  size  of  the  advance  and 
the  time  periods  for  paying  it  should  be  stipulated  in  the 
agreement,  but  in  such  a  manner  that  it  does  not  exceed 
the  wage  fund  calculated  for  the  worker  according  to  the 
wage  scales. 


4.  Responsibility  for  Observing  the  Terms  of  the 
Agreement 

4.1.  The  contractor  and  the  customer  bear  mutual 
responsibility,  including  material  responsibility,  for  the 
observance  of  the  terms  of  the  contract  as  fixed  in  the 
agreement. 

The  contractor  answers  for:  the  production  of  the 
amount  of  work  and  the  agricultural  products  by  type 
and  quality  in  the  stipulated  time  periods  as  envisaged 
by  the  agreement;  the  rational  utilization  and  preserva¬ 
tion  of  fixed  capital,  animals,  seeds,  feeds,  fuel,  power 
and  other  material  resources  and  the  observance  of 
requirements  for  labor  and  equipment  safety. 

The  customer  answers  for:  for  the  provision  of  material 
and  technical  resources,  equipment,  tools,  seeds,  feeds, 
fertilizers,  and  pesticides  and  chemicals  for  agricultural 

Description  of  products  with  indication  of  qualitative  param¬ 
eters 


crops  and  livestock  and  the  rendering  of  timely  agrarian, 
zoological  and  veterinary  assistance  in  accordance  with 
the  agreement  that  has  been  concluded. 

4.2.  In  the  event  of  the  customer’s  failure  to  fulfill  his 
obligations  that  leads  to  a  decline  in  the  yield  of  the 
agricultural  crops  and  productivity  of  the  animals,  the 
loss  of  crops  and  plague  among  animals,  disruption  of 
the  fulfillment  of  stipulated  assignments  by  the  contrac¬ 
tor,  decline  in  the  quality  of  products  or  work  or  the 
overconsumption  of  feeds  or  other  material  resources, 
the  contractor  has  the  right  to  make  a  claim  against  the 
customer.  The  procedure  for  reviewing  it  and  the  size  of 
recompense  to  the  contractor  for  losses  is  defined  in  the 
agreement. 

4.3.  The  responsibility  of  the  contractor  for  failure  to 
fulfill  contract  obligations  and  causing  material  loss  to 
the  farm  is  implemented  under  the  procedure  envisaged 
in  the  agreement,  as  well  as  in  accordance  with  existing 
legislation. 

Supplement  1 

[Note:  “ - ”  denotes  blank  spots  for  filling  in 

questionnaire] 

Acceptance  Agreement  for  a  Family  (Individual) 
Contract  for  the  Production  of  Agricultural 
Produce  (Work) 

The  kolkhoz,  sovkhoz  (state  agricultural  enterprise): 
- (name),  ofrayon,oblast(kray,ASSR),  republic: 


herein  called  the  “customer,”  in  the  person  of 

- (position,  last,  first  and  middle  names) 

on  the  one  hand,  and  the  family  consisting  of  (the 
agreement  may  be  concluded  by  workers  (kolkhoz  work¬ 
ers)  for  the  production  of  produce  (work)  in  the  basic 
worktime,  workers  of  the  given  farm  or  other  enterprise 
and  organization  for  the  production  of  produce  (work)  in 
time  off  from  work,  retired  people,  students  and 
housewives): - 

herein  called  the  “contractor,”  on  the  other  hand,  have 
concluded  this  agreement  on  the  following: 

1.  The  customer  proposes,  and  the  contractor  accepts, 
the  obligation:  1.1.  To  produce  agricultural  products  on 
the  following  scale: 

19— (year)  19—  19—  19—  19— 


[space  provided  for  4  responses] 


To  Carry  Out  Agricultural  Operations:* 

Type  of  work  Unit  of  measurement  Amount  Time  periods 

[Space  provided  for  5  responses] 

‘  Filled  in  upon  conclusion  of  the  agreement  for  the  fulfillment  of  individual  agricultural  operations  (cycles). 


JPRS.UEA-87-037 
29  December  1987 


11 


AGRICULTURE 


1.2.  To  hand  over  to  the  customer  all  of  the  products 
produced  or  all  work  to  be  submitted  to  the  designated 
recipient  of  the  work. 

1.3.  To  make  efficient  use  of  the  land,  animals,  agricul¬ 
tural  equipment  and  other  means  of  production. 

1 .4.  To  observe  the  rules  for  the  operation  of  equipment, 
veterinary  requirements,  rules  for  equipment  safety  and 
the  protection  of  the  environment.  Not  to  permit  the 
pollution  of  the  environment  or  violations  of  the  rules  of 
land  use. 

1.5.  To  ensure  the  preservation  of  all  of  the  productive 
facilities,  animals,  equipment,  technology,  implements, 
tools,  materials  and  products  produced  that  are  trans¬ 
ferred  to  him  under  the  agreement. 

1.6.  To  make  timely  declaration  of  the  containers  or 

transport  granted -  or  the  designation  of  the 

commission  for  accepting  work. 

1.7.  To  account  for  expenditures  and  product  removals. 

1.8.  Not  to  permit  the  attraction  of  the  services  of 
outside  organizations,  the  rental  of  machinery,  mecha¬ 
nisms,  equipment,  the  assignment  to  other  parties  of  the 
fulfillment  of  work  stipulated  in  the  contract. 

1.9.  To  fulfill  other  requirements  of  the  customer  asso¬ 
ciated  with  the  realization  of  his  obligations  under  this 
agreement. 

2.  The  customer  is  obliged: 

2.1.  To  transfer  to  the  contractor  the  basic  means  of 
production  according  to  the  document  for  the  period  the 
agreement  is  in  effect. 

2.2.  To  provide  the  contractor  with  the  essential  material 
and  technical  resources  in  the  amounts,  at  the  prices  and 
in  the  time  periods  corresponding  to  Supplement  1 . 

2.3.  Render  to  the  contractor  production,  transport  and 
other  services  in  amounts,  at  prices  and  in  time  periods 
corresponding  to  Supplement  2. 

2.4.  Create  the  essential  domestic 

andliving  conditions: - 

2.5.  Provide  consulting  on  issues  of  technology,  mecha¬ 
nization,  economy  and  the  organization  of  production 
and  wage  payments;  provide  the  necessary  analyses  and 
veterinary  support. 

2.6.  Provide  for  labor  safety,  instruction  in  equipment 
safety,  fire  protection,  as  well  as  issue  protective  attach¬ 
ments,  special  clothing  and  special  footwear  in  accor¬ 
dance  with  norms. 


2.7.  Receive  the  products  produced  and  work  done  from 
the  contractor  in  timely  fashion. 

2.8.  Organize  the  training  of  the  contractor  on  issues  of 
organization  and  wage  payments,  technology  and  the 
mechanization  of  production. 

2.9.  Provide  an  accounting  of  expenditures  and  product 
removals  according  to  the  indicators  necessary  to  calcu¬ 
late  material  compensation. 

2.10.  In  essential  cases,  at  the  request  of  the  contractor, 
designate  a  replacement  in  case  of  illness,  as  well  as  the 
paid  vacation  of  the  contractor  from  the  compensation 
due  him. 

2.1 1.  Material  compensation  for  the  contractor  for  the 
products  produced  or  work  done  in  the  following  man¬ 
ner  and  on  the  following  scale:  [7  lines  left  for  responses] 

2. 1 2.  Determine  the  economy  (excess)  of  direct  expendi¬ 
tures  on  the  products  actually  produced  proceeding  from 
the  agreed-upon  limit  for  direct  expenditures  per  unit  of 
product  according  to  Supplement  3  (filled  in  in  cases 
where  the  material  compensation  is  made  according  to 
valuations  per  unit  of  product). 

2.13.  For  contractors  that  are  workers  of  the 
sovkhoz  (kolkhoz):  (last,  first  and  middle  names)  [2  lines 
left  for  responses] 

the  material  compensation  due  them  according  to  the 
final  calculations,  but  no  greater  than  3  wage  scales  with 
a  regard  for  the  time  worked,  to  pay  into  their  personal 
accounts  as  wages,  for  which  the  stipulated  supplemental 
payments  for  the  skill  classification  and  tenure  by  spe¬ 
cialty  on  the  given  farm  are  deducted,  for  work  in  the 
regions  of  the  Far  North  and  regions  equivalent  to  it,  a 
regional  factor  is  employed  and  payments  are  made  on 
the  general  basis  of  bonuses  from  the  material-incentives 
fund.  Their  work  time  according  to  the  agreement  is 
calculated  in  continuous  tenure  by  specialty  on  the  given 
farm  for  deducting  pensions,  disability  stipends,  vaca¬ 
tion  pay  and  other  instances  stipulated  by  law. 

3,  General  issues. 

3.1.  The  contractor  independently  resolves  all  issues  in 
the  organization  of  labor,  the  working  and  leisure  regi¬ 
men,  accounting  for  the  labor  contribution  of  family 
members  to  the  overall  results  of  the  labor  and  the 
distribution  of  the  family  earnings. 

3.2.  Taking  into  account  the  specific  nature  of  the  family 
contract,  the  parties  agree  that  payments  for  overtime 
work  or  for  weekly  rest  days  are  not  made  to  the 
contractor. 

3.3.  The  reworking  or  correction  of  work  that  is  done 
through  the  fault  of  the  contractor  who  digresses  from 
agrarian  or  veterinary  requirements  is  done  at  the 
expense  of  the  contractor. 


JPRS-UEA-87-037 
29  December  1987 


3.4.  The  effect  of  this  agreement  is  extended  to  the  whole 
period  of  the  production  of  agricultural  products  (work) 
envisaged  in  Clause  1.1. 

3.5.  The  customer  has  the  right  to  abrogate  the  agree¬ 
ment  in  the  event  of  the  contractor’s  failure  to  fulfill  the 
obligations  he  has  taken  on  under  Clauses  1.1 -1.9. 

3.6.  The  customer  abrogates  the  agreement  upon  discov¬ 
ery  of  theft  of  products.  In  this  case,  material  compen¬ 
sation  for  the  ultimate  results  is  not  made. 

3.7.  The  contractor  has  the  right  to  abrogate  the  agree¬ 
ment  in  the  event  of  the  customer’s  failure  to  fulfill  the 
obligations  he  has  taken  on  in  Clause  2. 

3.8.  The  contractor  has  the  right  to  make  a  claim  against 
the  customer  if  the  failure  to  fulfill  the  obligations  he 
took  on  himself  led  to  a  decline  in  the  yield  of  agricul¬ 
tural  crops,  the  productivity  of  animals,  the  loss  of  seed 

Supplement  1  to  Sample  Agreement 


12  AGRICULTURE 


or  animals  or  the  overconsumption  of  material  resourc¬ 
es.  In  the  event  the  claim  is  accepted,  the  customer 
compensates  the  contractor  for  damages  in  the  following 

manner  and  on  the  following  scale: - [5  lines  left 

for  response] 

3.9.  The  contractor  answers  by  way  of  a  reduction  in  the 

size  of  compensation,  as  well  as  recompense  for  material 
damages,  for  a  failure  to  fulfill  the  obligations  he  has 
taken  on  himself  in  the  following  manner  and  on  the 
following  scale: - [3  lines  left  for  response] 

3.10.  The  designated  contractor  for  the  family 

is - (last,  first  and  middle  name) 

3.11.  Disputes  between  the  customer  and  the  contractor 
that  arise  in  the  course  of  the  execution  of  obligations 
under  the  agreement  are  considered  in  legal  proceedings. 

3. 1 2.  This  agreement  consists  of  three  copies:  2  copies  to 
the  customer  and  1  to  the  contractor. 

The  —  of - ,  19 — . 

Customer - Contractor - (signatures) 


Material  and  Technical  Supply  for  the  Contractor 

Type  measurment  Unit  of  provision  Time  of  Amount  Price  (rub.-kop.) 

[6  lines  left  for  responses] 

The - of - ,  1 9 — . 

Customer - (signature)  -  Contractor - (signature) 

Supplement  2  to  Sample  Agreement 


Obligations  of  the  Customer  in  Rendering  Production,  Transport  and  Other  Services  to  the  Contractor 

Type  measurement  Unit  of  Times  Amount  (rub.-kop.)  Price 

The - of - ,  19 — 

Customer - (signature)  -  Contractor - (signature) 

Supplement  3  to  Sample  Agreement 


Product  description 


Limit  of  Direct  Expenditures  per  Unit  of  Product  Output 

Unit  of  measurement  - Expenditure  limit - 

total  — including- 


[Space  left  for  6  responses] 
The - of - ,  1 9 — . 


Customer - (signature)  -  Contractor - (signature) 

COPYRIGHT:  VO  “Agropromizdat”,  “Ekonomika  sels-  1282 1 
kogo  khozyaystva”,  1987. 


JPRS-UEA-87-037 
29  December  1987 


TRANSPORTATION 


13 


CIVIL  AVIATION 


Discussion,  Diagrams  of  Wide-Body  11-96-300 

81442273  Moscow  KRYLYA  RODINY  in  Russian  No  7, 
Jul  87  pp  34-35 

[Article  by  engineer  A.  Shakhnovich:  “The  Aircraft  of 
the  12th  Five-  Year  Plan”] 

[Text]  Aircraft  with  the  letters  “11”  on  the  fuselage  hold  a 
prominent  place  in  domestic  and  world  aviation.  In  half  a 
century  of  creative  work,  the  collective  of  the  Experimental 
Design  Bureau  imeni  Sergey  Vladimirovich  Ilyushin — its 
organizer  and  manager  for  many  years^-developed  a  large 
family  of  aircraft  for  the  country’s  Air  Forces  and  civil 
aviation.  All  the  piston,  turboprop  and  jet  aircraft  of  this 
0KB  [experimental  design  bureau]  have  one  characteristic 
in  common — high  efficiency  and  reliability. 

Some  History 

Solution  of  this  main  problem — providing  the  country  with 
a  reliable,  efficient  aircraft,  one  that  is  technologically 
efficient  in  production  and  simple  in  operation — has  been 
ensured  by  an  integrated  approach  to  the  project  planning. 
The  collective  has  tried  to  find  the  best  correlations  between 
the  parameters  and  characteristics  of  an  aircraft,  looked  for 
efficient  solutions  persistently  and  creatively,  and  main¬ 
tained  close  contact  with  all  the  institutions  and  organiza¬ 
tions  taking  part  in  a  future  aircraft’s  development.  And  this 
has  ensured  the  success  and  long  service  life  of  the  aircraft. 

Even  now,  35  and  40  years  after  they  were  developed,  one 
can  see  short-  range  piston-driven  11-12  and  11-14  aircraft  in 
flight.  The  11-18,  representing  the  first  generation  of  Soviet 
gas  turbine  airliners,  has  been  the  most  widely  used  and 
economical  turboprop,  in  service  for  more  than  a  quarter 
century.  The  11-62  and  11-6 2M  turbojets,  which  can  accom¬ 
modate  from  138  to  186  passengers,  depending  on  the 
length  of  the  route,  have  been  flying  the  longest  mainline 
routes  for  20  years. 

The  best  traditions  established  during  S.  V.  Ilyushin’s  life 
are  being  carefully  maintained  and  developed  now  in  the 
0KB  under  the  leadership  of  his  student  and  successor, 
Chief  Designer  and  Academician  Genrikh  Vasilyevich 
Novozhilov. 


The  First  Wide-Bodies 

Development  of  the  USSR’s  first  wide-bodied  airliner,  the 
350-  seat  11-86,  and  its  entry  into  service  on  several  air 
routes  right  away  began  a  new  stage  of  quality  in  the  work  of 
the  0KB  imeni  S.  V.  Ilyushin.  The  course  of  events — the 
increasing  volume  of  passengers,  first  of  all,  especially  on 
medium-range  routes — made  it  necessary  to  develop  this 
aircraft.  The  use  of  aircraft  with  relatively  small  seating 
capacity  created  real  “overcrowding”  in  the  airspace  around 
airports  that  were  forced  to  accommodate  a  large  number  of 


aircraft  in  short  periods  of  time.  In  order  to  alleviate  the 
dangerous  traffic  density,  an  aircraft  was  required  which 
could  carry  as  many  passengers  as  two  to  four  aircraft  in  the 
same  category. 


The  0KB  collective  developed  the  new-generation  aircraft 
in  an  integrated  manner  in  accordance  with  tradition,  taking 
into  account  the  increased  requirements  for  its  reliability, 
economic  efficiency,  and  quality  of  passenger  service.  They 
made  the  most  of  the  experience  in  developing  and  operat¬ 
ing  previous  aircraft  and  the  latest  achievements  in  aviation 
science  and  technology  and  production  engineering,  every¬ 
thing  advanced  that  was  available  in  domestic  aircraft 
manufacturing.  A  series  of  studies  and  experiments  was 
carried  out  in  the  stages  of  preliminary  design  work  in 
collaboration  with  scientific  organizations,  particularly  with 
the  TsAGI  [Central  Aerodynamics  Institute  imeni  N.  Ye. 
Zhukovskiy]  and  the  future  component  suppliers.  On  the 
basis  of  them  they  determined  the  basic  design  of  the 
airliner  and  its  configuration,  using  the  “carry-on  baggage 
plus  containers”  system,  and  its  dimensions,  weight  and 
flight  characteristics.  The  atmosphere  of  creativity  and 
active  search  for  the  best  design  solutions,  confirmed  by  1 30 
patents,  contributed  to  successful  resolution  of  the  problems 
of  safety,  reliability,  and  operating  efficiency. 


The  Long-Range  Mainline  Wide-Body 


Enriched  by  experience  in  the  design,  construction,  and 
regular  operation  of  its  first  wide-body,  the  medium-range 
11-86,  the  0KB  imeni  S.  V.  Ilyushin  began  development  of 
its  “younger  brother,”  the  long-range  11-96-300  wide-body. 
This  aircraft  of  the  near  future  is  designed  to  carry  300 
passengers,  baggage  and  cargo  with  a  combined  weight  of  up 
to  40  tons  on  domestic  mainline  routes  of  4,000  to  9,000 
kilometers  with  the  heaviest  passenger  flows.  It  is  also 
planned  for  use  on  routes  of  up  to  1 1 ,000  kilometers  with  a 
change  in  the  number  of  cabin  seats.  At  first  it  will  help  on 
the  long-distance  mainlines,  and  later  it  will  replace  the 
11-62,  which  has  been  operated  on  them  since  1967. 


The  11-96-300  is  a  cantilever  monoplane  with  a  sweptback 
low  wing.  It  resembles  the  11-86  on  the  exterior.  The  fuselage 
is  the  same  diameter  (6.08  meters),  but  it  is  5  meters  shorter. 
The  latest  methods  of  calculation  and  technological  achieve¬ 
ments  have  been  incorporated  in  its  design,  improving  the 
aircraft’s  technical  characteristics,  performance,  reliability 
and  flight  safety.  Its  overall  mass  has  been  reduced  and  the 
quality  of  its  exterior  surface  has  been  improved. 

Special  research  and  experiments  conducted  by  the  0KB 
collective,  together  with  TsAGI  specialists,  helped  in 
designing  a  supercritical  wing  with  a  high  aspect  ratio  and 
vertical  wingtips,  which  increase  its  lift-to-drag  ratio.  A 
number  of  steps  were  carried  out  to  improve  component 
aerodynamics.  In  particular,  the  number  of  joints  was 
reduced  to  a  minimum  by  using  long  panels. 


JPRS-UEA-87-037 
29  December  1987 


14 


TRANSPORTATION 


Three-View  Depiction  of  the  11-96-300 


Specifications 


Engines,  in  ions  4x16 

Maximum  number  of  passengers  300 

Maximum  payload,  in  ions  40 

Operalional  range  with  30-lon  payload  and  fuel  reserve,  in  9,000 

kilometers 

Operational  range  with  15-ton  payload  and  fuel  reserve,  in  1 1,000 

kilometers 

Mass  of  equipped  aircraft,  in  tons  1 17 

Takeoff  mass,  in  tons  216 

Cruising  speed,  in  kilometers  per  hour  850-900 

Takeoff  distance  required,  in  meters  2,600 

Landing  distance  required,  in  meters  1,980 

Landing  approach  speed,  in  kilometers  per  hour  260 


JPRS-UEA-87-037 
29  December  1987 


TRANSPORTATION 


15 


The  best  arrangement  was  found  to  couple  the  wing  to  the 
fuselage  and  the  engine  nacelle  pylons.  The  wing  is  fitted 
with  efficient  high-lift  devices:  slats  extending  the  entire 
length  of  the  span,  double-slotted  inboard  flaps  and  single- 
slotted  outer  flaps.  Lateral  controls — inboard  ailerons  and 
spoilers — also  were  installed  in  the  wing.  Combined  with 
the  extensive  use  of  more  durable  metal  alloys,  composition 
materials  and  honeycomb  structures,  with  which  the  wing’s 
leading  and  trailing  edge  assemblies  and  the  doors  to  the 
landing  gear  compartments  are  made,  this  has  made  it 
possible  to  develop  a  wing  with  a  high  level  of  aerodynamic 
and  weight  efficiency. 

The  new  aircraft  has  a  tail  assembly  of  the  customary 
configuration.  The  horizontal  section  is  the  same  as  on  the 
11-86,  but  the  vertical  section  is  larger  as  the  result  of  an 
increase  in  height  of  1.5  meters.  This  was  done  to  improve 
directional  stability  when  one  engine  fails  in  flight. 

In  developing  the  airframe,  the  operating  loads  were  care¬ 
fully  analyzed,  the  stress  and  strain  of  the  structure  were 
simulated  with  a  computer,  and  the  distribution  of  forces 
was  optimized.  This  made  it  possible  to  reduce  the  aircraft’s 
weight  and  ensure  its  long  service  life. 

The  landing  gear  of  the  11-96-300  consists  of  three  main 
struts  with  12  wheels  positioned  behind  the  aircraft’s  center 
of  mass  and  a  forward  strut  with  two  wheels  in  the  fuselage 
nose  section.  All  the  wheels  are  the  same  size — 130  by  48 
centimeters —  with  tire  pressure  of  11.5  kilograms  per 
square  centimeter.  This  landing  gear  will  enable  the  aircraft 
to  use  the  majority  of  airfields  with  paved  runways. 

Four  D-90AN  turbofan  engines  with  a  high-bypass  ratio, 
developed  by  the  collective  headed  by  Chief  Designer  P.  A. 
Solovyev,  are  suspended  on  pylons  under  the  wing.  They  are 
special  because  of  their  low  specific  fuel  consumption  in 
cruise  mode,  low  noise  factor,  and  automated  control  sys¬ 
tem.  Each  one  has  a  takeoff  thrust  of  16  tons.  The  fuel 
system  on  the  Il-96-300was  developed  separately  and  oper¬ 
ates  automatically.  Each  engine  is  supplied  from  the  feed 
compartment  of  its  own  tank.  The  compartments  are  con¬ 
tinuously  replenished  with  fuel  transferred  to  them  by  jet 
pumps  which  are  practically  trouble-free.  The  aircraft  has 
nine  basic  torsion-box  integral  tanks — four  in  each  outer 
wing  section  and  one  in  the  wing  center  section. 

In  Any  Weather,  Over  Any  Terrain... 

The  selection,  development  and  installation  of  functional 
systems  (there  are  backups  of  the  most  important  ones)  were 
subordinate  to  the  achievement  of  a  high  level  of  safety  and 
reliability  for  the  aircraft  and  its  economic  efficiency  and 
technical  perfection.  The  majority  of  those  on  the  11-96-300 
are  more  refined  than  those  that  now  exist.  The  new 
flight-control  and  navigation  equipment  complex  with  a 
cathode-ray  tube  indication  system  provides  for  practically 
full  automation  of  all-weather  navigation  over  any  areas  in 
the  world  and  operation  under  ICAO  [International  Civil 
Aviation  Organization]  Category  III  (Footnote:  Provides  for 
descent  and  automatic  landing  without  ground  visibility); 


the  crew  consists  of  just  three  persons — the  commander, 
copilot,  and  flight  engineer.  The  introduction  of  such  a 
complex  will  reduce  crew  fatigue  and  improve  safety  and 
flight  regularity. 

The  use  of  more  efficient  functional  systems  has  made  it 
possible  to  significantly  reduce  the  aircraft’s  mass,  increase 
the  level  of  flight  automation,  and  ensure  efficiency  and 
safety  in  operation.  The  systems  installed  in  the  11-96-300 
serve  to  achieve  this  objective:  a  remotely-controlled  system 
for  flying  the  aircraft  “in  accordance  with  the  forces,”  an 
automated  system  for  controlling  the  high-lift  devices,  and 
an  integrated  system  for  presenting  flight  data  and  informa¬ 
tion  on  the  operation  of  all  systems  on  color  displays  in  the 
cockpit. 

The  cockpit  was  designed  so  that  the  flight  engineer  can 
remain  in  front  of  the  central  console  between  the  aircraft 
commander  and  the  copilot  throughout  an  entire  flight.  Use 
of  the  latest  automated  and  electronic  facilities  has  made 
such  an  arrangement  possible. 

Data  displays  and  units  for  controlling  on-board  systems  are 
located  in  a  relatively  small  area  on  the  instrument  panel, 
the  central  console  and  the  overhead  panel.  Information  on 
the  operation  of  on-board  systems  and  the  flight-control  and 
navigation  status  is  provided  in  fully  processed  form  and 
excludes  the  possibility  of  erroneous  interpretation.  In  addi¬ 
tion,  the  “dark  cockpit”  principle  has  been  utilized  for  rapid 
and  timely  perception  of  information;  throughout  a  fli^t, 
under  normal  conditions  and  when  on-board  systems  are 
functioning  accurately,  there  are  no  warning  signals  on  the 
panels  and  consoles  except  those  which  report  that  systems 
which  operate  temporarily  have  been  turned  on  (a  blue 
light). 

The  most  advanced  data  display  facilities  ensure  an  expe¬ 
ditious  change  in  the  type  of  information  determined  by 
flight  modes  and  maintenance  of  the  minimum  capacity 
needed  for  each  of  these  modes.  The  information  content  of 
the  warning  and  indicator  system  nad  the  clearness  with 
which  the  data  are  presented  have  been  improved  through 
the  use  of  coded  lighting.  The  list  of  indicating  instruments 
on  the  11-96-300  has  been  reduced  by  a  factor  of  three. 

The  11-96-300  has  two  decks.  Like  the  11-86,  it  is  designed  to 
operate  in  two  versions,  a  300-seat  tourist  version  and  a 
combined  version.  The  tourist  version  is  the  basic  one.  Seats 
are  positioned  in  the  cabins  in  three  rows  of  9  seats  each 
with  two  aisles.  The  forward  cabin  holds  66  passengers  and 
234  are  accommodated  in  the  aft  cabin.  The  cabins  are 
equipped  with  a  video  and  sound  system.  The  seats  have 
adjustable  backs  and  arm  rests  which  fold  back.  A  small 
individual  table,  a  fan,  and  earphones  for  listening  to  music 
programs  have  been  provided.  On  a  long  flight,  the  passen¬ 
gers  will  be  provided  with  two  meals.  A  galley  and  kitchen 
complex  has  been  provided  for  this  on  the  lower  deck. 

COPYRIGHT:  “Krylya  Rodiny”,  1987 

8936 


JPRS-UEA-87-037 
29  December  1987 


16 


TRANSPORTATION 


KoMflONOsa  cwioNoa. 

Arrangement  of  Cabins:  Tourist  Class  for  300  seats,  Seat  Installation  Spacing  870  Millimeters 


Key: 

Bottom,  left  to  right:  toilet,  coat  closet,  elevator,  flight  attendants’  position  (10); 

Top,  left  to  right:  galley  counter,  unit  for  flight  attendants’  personal  effects,  toilet  to  accommodate  6  persons. 

Both  cabins  have  fixed  coat  closets  designed  for  use  in  the  summer.  In  the  cold  season,  additional  closets  will  be 
installed  by  rmoving  seats.  In  the  combined  version  for  235  seats,  it  is  planned  to  divide  the  upper  deck  into  three 
cabins,  with  22  seats  in  the  first  one,  40  in  the  second,  and  173  in  the  third  cabin.  Additional  galley  and  kitchen 
equipment  will  be  palced  between  the  first  and  second  cabins. 

Two  large  compartments  on  the  lower  deck  have  been  set  aside  for  cargo  in  standard  containers,  six  in  the  forward 
compartment  and  10  in  the  aft  compartment.  If  all  seats  are  filled  on  the  upper  deck,  passengers  baggage  will  be 
carried  in  nin  containers,  and  mail  and  priority  cargo  will  be  carried  in  seven  of  them.  The  third  compartment  on  the 
lower  deck  is  basically  intended  for  so-called  “individual”  items  of  cargo  not  in  containers. 

Before  very  long,  the  country’s  aviation  enterprises  will  be  receiving  the  new  comfortable  and  economically  efficient 
aircraft,  which  are  ready  to  accommodate  thousands  of  passengers. 


1 


JPRS-UEA-87-037 
29  December  1987 


17 


TRANSPORTATION 


Key: 


1.  Nose  cone  2.  Lower  section  of  cockpit  3.  Canopy  4.  Access  door  5.  Cargo  hatch  6.  Galley-kitchen  door 
7.  Fuselage  nose  section  (frames  7-40)  8.  Fuselage  middle  section  (frames  40-67)  9.  Fuselage  tail  section 

10«  Forward  fin  fairing  11.  Fin  compartment  12.  Fin  13.  Rudder  14.  VSU  [Auxiliary  power  plant] 
compartment  15.  Elevators  16.  Stabilizer  17.  Pressurized  end  plate  18.  Inboard  flaps  (double-  slotted) 
1 9.  Braking  flaps  20.  Inboard  aileron  2 1 .  Spoilers  22.  Middle  and  outer  flaps  (single-slotted)  23.  Fairings  for 
flap  guide  rails  24.  Outboard  aileron  25.  Vertical  wingtip  26.  Detachable  wing  torsion  box  (OChK)  27.  Slat 
section  28.  Leading  edge  of  wing  29.  Center  wing  torsion  box  (SChK)  30.  Wing  center  section 
31.  Wing-fuselage  fillet  32.  Pylon  33.  Air  intake  and  engine  nacelle  doors  34.  Doors  to  ventral  compartment 
35.  Main  landing  gear  36.  Nose  gear  37.  Doors  to  nose  gear  compartment 


JPRS-UEA-87-037 
29  December  1987 


18 


TRANSPORTATION 


RAIL  SYSTEMS 


Rail  System  Semi-Annual  Plan  FulOIlment 

Moscow  GUDOK  in  Russian  21  July  87  pp  1-3 

[TASS  item:  “The  Semi-Annual  Results  Have  Been 
Summed  Up:  A  Report  From  the  USSR  Central  Statis¬ 
tical  Administration”] 


[Text]  The  USSR  Central  Statistical  Administration 
Report  on  the  Results  in  Fulfilling  the  State  Plan  for  the 
Economic  and  Social  Development  of  the  USSR  During 
the  First  Six  Months  of  1987  says  that  the  country’s 
workers  —  in  carrying  out  the  decisions  of  the  January 
1987  CPSU  Central  Committee  Plenum  —  have  joined 
in  the  restructuring  process  more  and  more  actively. 

As  a  result  of  the  adoption  of  additional  measures  and 
the  expansion  of  the  application  of  advanced  forms  for 
the  management,  organization  and  stimulation  of  labor, 
the  shortfall,  which  was  tolerated  at  the  beginning  of  the 
year,  managed  to  be  basically  overcome  during  the 
second  quarter,  the  intensity  of  work  raised,  and  a 
further  growth  in  public  production  and  the  Soviet 
people’s  standard  of  living  insured  during  the  six  months 
on  the  whole.  During  the  first  half  of  1987,  industry 
achieved  the  production  growth  rates  that  had  been 
provided  for  in  the  calculations  for  the  plan  for  this  time 
frame.  The  productivity  of  social  labor  grew  by  2.3 
percent  when  compared  with  the  first  half  of  1986,  and  by 
3.5  percent  during  the  second  quarter;  the  produced 
national  income  increased  by  2.4  and  3.6  percent, 
respectively. 

The  entire  increase  (14  billion  rubles)  in  industrial 
output  was  obtained  based  on  the  increase  in  labor 
productivity.  A  total  of  2.8  billion  more  rubles  of  fixed 
capital  was  commissioned  from  state  capital  investments 
than  during  the  first  half  of  last  year. 

The  increase  in  the  people’s  prosperity  is  continuing. 
The  average  monthly  wage  of  workers  and  employees 
increased  by  2.8  percent;  the  payment  for  the  labor  of 
kolkhoz  members  —  by  four  percent;  and  payments  and 
benefits  to  the  population  from  public  consumption 
funds  —  by  3.9  billion  rubles.  More  housing  valued  at 
5.1  million  square  meters  was  constructed. 

However,  restructuring  is  only  just  coming  around  in 
many  sectors  of  the  national  economy;  the  shortfall, 
which  was  tolerated  at  the  beginning  of  the  year  in  the 
work  of  a  number  of  branches,  was  overcome  slowly  — 
especially  in  machine  building,  rail  transport  and  con¬ 
struction.  The  problem  of  satisfying  the  population’s 
growing  demand  for  goods  and  services  remains  an  acute 
one.  The  retail  trade  plan  was  not  fulfilled.  The  foreign 
trade  turnover  volume  was  reduced  by  four  percent.  The 
planned  rates  of  increase  in  national  income  were  not 
achieved. 


During  the  first  half  of  the  year,  16.5  billion  rubles  of 
state  capital  investments,  or  10  percent  more  than  dur¬ 
ing  the  corresponding  period  of  last  year,  were  used  for 
the  reconstruction  and  technical  reequipping  of  the 
national  economy. 

The  development  and  organization  of  the  production  of 
new  systems  for  automating  production  in  accordance 
with  the  Complex  Program  for  the  Scientific  and  Tech¬ 
nical  Progress  of  the  CEMA  Member  Countries  to  the 
Year  2000  were  carried  out. 


Products,  corresponding  to  the  world  technical  level, 
exceeded  40  percent  of  the  production  volume  of  the 
most  important  types  of  machine  building  products.  The 
machine  building  ministries  realized  the  plan  for  mas¬ 
tering  the  production  of  new  generation  equipment  by  79 
percent. 

The  first  practical  results  of  the  activity  of  the  inter¬ 
branch  scientific  and  technical  complexes  for  technically 
equipping  the  national  economy’s  branches  were 
obtained.  A  number  of  important  indicators  of  scientific 
and  technical  progress  were  improved  in  the  branch 
complexes.  However,  the  scales  of  using  basic  technology 
in  industry  grew  at  slow  tempos. 

On  kolkhozes  and  sovkhozes,  grain  and  leguminous 
crops,  which  are  being  cultivated  using  intensive  tech¬ 
nologies,  have  been  sown  on  35.3  million  hectares  for  the 
1987  harvest. 

Exactingness  toward  product  quality  was  increased. 
State  acceptance,  which  has  been  introduced  at  1,500 
enterprises,  each  month  rejected  90  million  rubles  of 
products  on  the  average,  or  0,8  percent  of  the  produced 
items.  Products  totalling  approximately  40  million 
rubles  were  once  and  for  all  rejected  as  defective  during 
the  first  half  of  the  year. 

The  necessary  attention  is  not  being  paid  to  the  timely 
assimilation  of  capacities.  On  the  average,  capacities 
were  used  82  percent.  As  a  result  of  the  shortfall  in 
assimilating  and  using  capacities,  products  totalling  500 
million  rubles  were  not  received. 

Approximately  7  million  tons  of  fuel  equivalents,  0.9 
million  tons  of  ferrous  rolled  metal  and  more  than  1 
million  tons  of  cement  were  saved.  The  drawing  of 
secondary  resources  into  the  economic  turnover  was 
expanded. 

At  many  enterprises,  economic  work  is  being  intensified, 
the  practice  of  establishing  direct  long-term  economic 
ties  is  being  expanded,  and  delivery  discipline  is  being 
strengthened. 


JPRS-UEA-87-037 
29  December  1987 


19 


TRANSPORTATION 


The  assets,  which  are  being  allotted  for  the  social  devel¬ 
opment  of  labor  collectives,  are  being  mastered  better 
than  during  the  first  half  of  last  year.  However,  the 
advantages  of  the  new  economic  mechanism,  full  cost 
accounting  and  self-financing  are  still  not  being  fully 
realized. 

In  a  number  of  enterprises,  a  tense  financial  situation  has 
taken  shape  in  connection  with  the  failure  to  fulfill 
delivery  obligations  and  with  the  significant  sizes  of  fines 
paid.  Of  the  industrial  ministries  whose  enterprises  work 
under  full  cost  accounting  and  self-financing  conditions, 
the  profit  plan  was  only  fulfilled  by  the  USSR  Ministry 
of  the  Automotive  Industry.  One  of  the  reasons  for  this 
is  the  slow  reduction  in  production  costs. 

A  total  of  76  percent  of  the  industrial  enterprises  fully 
managed  their  contract  obligations. 

The  output  of  industrial  products  grew  during  the  second 
quarter  by  4.4  percent;  and  based  on  the  results  of  the 
first  six  months  as  a  whole  —  by  3.5  percent,  as  was 
prescribed  for  this  period.  The  half-year  quotas  were 
fulfilled  for  the  extraction  and  production  of  the  most 
important  types  of  fuel  and  energy  resources.  The  above¬ 
plan  extraction  of  oil,  including  gas  condensate,  was  3.7 
million  tons,  and  that  of  natural  gas  —  6.7  billion  cubic 
meters.  In  the  coal  industry,  USSR  Ministry  of  Coal 
Industry  enterprises  mined  8.8  million  tons  of  coal 
above  the  plan.  At  yhe  same  time,  approximately  half  of 
the  coal  mining  associations  did  not  cope  with  their 
contract  obligations. 

The  metallurgical  complex  enterprises  fulfilled  the  plan 
for  the  production  of  the  main  types  of  items,  except  for 
steel  pipes.  A  total  of  338,000  tons  of  steel  and  461,000 
tons  of  prepared  rolled  products  were  produced  and  two 
million  tons  of  iron  ore  were  mined  above  the  plan.  The 
output  of  products  in  the  assigned  assortment  — 
advanced  highly  efficient  types  of  metal  products  that 
are  primarily  needed  in  machine  building  —  was  not 
provided  for. 

In  the  ministries  of  the  machine  building  complex,  the 
output  of  many  types  of  advanced  products  was 
increased  during  the  first  half  of  the  year.  At  the  same 
time,  a  majority  of  the  ministries  did  not  provide  for  the 
fulfillment  of  planning  quotas  for  the  production  of  the 
main  types  of  machinery  and  equipment.  The  semi¬ 
annual  plan  for  the  production  of  rolling,  blast-furnace 
and  smelting  equipment;  diesel  locomotives;  freight  cars; 
large  electrical  machinery;  mainline  electric  locomo¬ 
tives;  metal-cutting  machine  tools;  and  forge  press 
machinery  was  not  fulfilled.  The  shortfall  in  the  produc¬ 
tion  of  chemical  and  oil  and  gas  refinery  equipment  and 
equipment  for  processing  polymeric  materials  was  not 
overcome. 

The  planned  rates  of  increase  in  the  production  volume 
of  machine  building  were  not  achieved. 


In  the  enterprises  of  the  chemical  and  lumber  complex, 
output  grew  and  the  fulfillment  of  the  plan  for  the 
production  of  mineral  fertilizer  and  newsprint  was 
assured.  The  production  of  a  number  of  advanced  and 
highly  efficient  types  of  products  was  increased.  At  the 
same  time,  the  planned  production  volumes  of  synthetic 
resin  and  plastics,  including  polyvinylchloride  and  pipes 
and  pipe-line  items  made  of  thermo-softening  plastic 
material,  were  not  provided  for.  The  plan  for  the  pro¬ 
duction  of  sulfuric  acid,  synthetic  ammoniate,  caustic 
soda,  merchantable  industrial  wood,  and  lumber  was  not 
fulfilled. 

It  further  says  in  the  USSR  Central  Statistical  Adminis¬ 
tration  report  that,  during  the  first  half  of  the  year,  the 
overall  volume  of  consumer  goods  production  (less  alco¬ 
holic  beverages)  was  141  billion  rubles  in  retail  prices; 
that  was  four  percent  higher  than  during  the  first  half  of 
last  year.  A  number  of  ministries  had  a  shortfall  in 
fulfilling  the  plan  for  the  production  of  consumer  goods 
in  general. 

Having  fulfilled  their  quotas  for  the  production  of  the 
main  types  of  products,  the  USSR  Ministry  of  Light 
Industry  associations  and  enterprises  failed  to  deliver  to 
specific  consumers  products  totalling  0.6  billion  rubles 
during  the  first  half  of  the  year. 

The  introduction  of  the  new  management  mechanism  in 
the  branches  of  the  agroindustrial  complex  had  a  posi¬ 
tive  effect  on  work  results.  The  total  output  of  agricul¬ 
ture  increased  by  four  percent  in  comparison  with  the 
same  period  of  last  year,  and  labor  productivity 
increased  by  five  percent  in  the  public  farms  sector. 

Despite  the  protracted  spring,  agricultural  enterprises 
managed  the  spring  field  work.  Areas  sown  for  the  1987 
harvest  reached  210.7  million  hectares,  including  117.6 
million  hectares  sown  with  grain  and  leguminous  crops. 
The  areas  sown  with  com,  cotton,  sunflowers,  and 
annual  grass  crops  were  expanded. 

Purchases  of  hothouse-greenhouse  and  early  open- 
ground  vegetables  was  1.2  million  tons  during  the  first 
half  of  the  year.  This  was  1 1  percent  less  than  for  the 
same  period  of  1986.  The  semi-annual  plan  for  deliveries 
to  the  all-  union  stock  of  vegetables  was  fulfilled  by  93 
percent. 

In  animal  husbandry,  the  production  of  meat  increased 
by  seven  percent,  that  of  milk  —  by  two  percent,  and  that 
of  eggs  —  by  three  percent  when  compared  with  the 
corresponding  period  of  last  year.  The  farms  of  the 
Ukrainian,  Azerbaijan,  Moldavian  and  Tajik  SSRs 
reduced  milk  production. 

At  the  present  time,  29  agroindustrial  combines  and 
associations  and  six  agrofirms,  which  are  closely  coordi¬ 
nating  the  production,  procurement,  processing,  and 
sales  of  agricultural  products  and  which  are  working  on 


JPRS-UEA-87-037 
29  December  1987 


20 


TRANSPORTATION 


the  principles  of  full  cost  accounting,  are  functioning  in 
the  agroindustrial  complex.  The  brigade  and  family 
contract  continues  to  be  expanded  on  kolkhozes  and 
sovkhozes. 

The  food  industry  ente^rises  of  the  agroindustrial  com¬ 
plex  produced:  5.9  million  tons  of  meat  (industrially 
processed);  1.8  million  tons  of  sausage  items;  799,000 
tons  of  animal  oil;  16.3  million  tons  of  whole  milk 
products  in  terms  of  milk;  2.8  million  tons  of  food  and 
fish  products,  including  canned  fish;  821,000  tons  of 
margarine  products;  1 .6  million  tons  of  vegetable  oil;  2.4 
million  tons  of  confectionery  items;  6.8  billion  standard 
cans  of  preserves;  78  million  decaliters  of  mineral  water; 
and  274  million  decaliters  of  nonalcoholic  drinks.  In 
comparison  with  the  corresponding  period  of  last  year, 
the  output  of  vodka  and  liquor  items  was  reduced  by  1 9 
percent  and  that  of  beer  —  by  three  percent. 

During  the  half  year,  fewer  tractors,  fodder  gathering 
combines,  row  reapers,  and  press  crop  collectors  than 
prescribed  by  the  plan  were  delivered  to  the  agroindus¬ 
trial  complex. 

A  total  of  25  billion  rubles  of  capital  investments  were 
sent  to  expand  the  agroindustrial  complex,  including  the 
branches  that  supply  agriculture  with  the  means  of 
production;  20  billion  rubles  of  these  went  to  agriculture. 

The  commissioning  of  fixed  capital  at  the  expense  of 
state  capital  investments  was  increased  by  six  percent 
and  reached  48.5  billion  rubles,  83  percent  of  the  first 
semi-annual  plan.  A  total  of  77.2  billion  rubles  of  state 


capital  investments,  or  95  percent  of  the  allocation 
established  for  this  period,  were  assimilated.  Their  vol¬ 
ume  grew  by  six  percent  when  compared  with  the 
corresponding  period  of  last  year. 

The  plans  for  commissioning  mainline  gas  pipelines  and 
oil  and  oil  product  pipelines  and  the  capacities  of  turbine 
power  stations  and  for  the  production  of  steel  piping, 
synthetic  resins  and  plastics,  caustic  soda,  lumber,  fur¬ 
niture,  and  fabric  for  household  linen  and  underwear 
were  not  fulfilled. 

The  plan  for  contract  work  during  the  first  half  of  the  was 
year  was  fulfilled  by  99  percent.  The  volume  of  work 
grew  by  five  percent  and  labor  productivity  increased  by 
4.3  percent. 

However,  the  USSR  Central  Statistical  Administration 
report  says  that  changes  did  not  occur  in  capital  con¬ 
struction  in  the  direction  of  considerably  increasing  the 
effectiveness  of  capital  investments  and  construction. 
The  time  frames  for  building  projects  exceed  the  norm 
and  the  number  of  projects  being  simultaneously  built 
continues  to  be  significant. 

The  shipping  volume  (dispatching)  of  freight  using  all 
types  of  general  use  transport  reached  6.3  billion  tons 
and  was  somewhat  more  than  during  the  first  half  of  last 
year;  passenger  traffic  exceeded  500  billion  passenger- 
kilometers  and  grew  by  2.4  percent.  Freight  shipments 
and  passenger  traffic  of  the  individual  types  of  general 
use  transport  are  described  by  the  following  data: 


Shipment  (dispatching)  of 
freight,  millions  of  tons 
Rail  transport 
Sea  transport 
River  Transport 
Motor  transport 
Pipeline  transport — oil  and 
oil  products 

Gas  (USSR  Ministry  of  Gas 
Industry) 

Passenger  traffic,  billions  of 
passenger-kilometers 
Rail  transport 
Air  transport 


Fulfilled  during  1st  6  months 
of  1987 


1982 

121 

254 

3317 

329 

270 


179 

89 


Percent  of  plan  fulfillment 


98 

102 

102 

100.5 

101 

102 


102 

102 


1  St  six  months  of  1 987  as  %  of 
1st  6  months  of  1986 


98 
99.4 

99 
102 
103 

106 


101 

104 


Rail  transport  fulfilled  the  semi-annual  plan  for  shipping 
bituminous  coal,  coke,  oil  and  oil  products,  ore,  cement, 
mineral  fertilizer  and  other  cargo.  The  shortfall,  which 
existed  at  the  beginning  of  the  year  was  not  overcome. 
The  plan  for  the  overall  shipment  of  cargo  was  underful¬ 
filled  by  39  million  tons,  including  metalwork,  lumber 
cargo,  granular  slag,  refractory  material,  industrial  raw 
material,  molding  material,  flux,  and  ferrous  metals,  A 
total  of  22  railroads,  especially  the  Volga,  West  Siberian, 


Southeastern,  Donetsk,  and  Kuybyshev,  lagged  behind 
according  to  this  indicator.  Labor  productivity  grew  by 
6.2  percent.  The  use  of  rolling  stock  worsened.  Viola¬ 
tions  of  the  schedule  for  freight  and  passenger  trains 
were  not  eliminated.  In  June  alone,  13.8  percent  of  the 
passenger  trains  (less  the  suburban  ones)  arrived  at  their 
destinations  late;  the  average  time  that  a  train  was  late 
reached  1.3  hours.Sea  transport  fulfilled  the  plan  for 
transporting  cargo  overseas  by  102  percent.  There  was  a 


JPRS-UEA-87-037 
29  December  1987 


21 


TRANSPORTATION 


shortfall  in  dispatching  cargo  on  coastal  trips;  the 
Danube,  Azov,  Kamchatka,  and  Caspian  steamship 
companies  did  not  manage  their  quotas. 

Passenger  departures,  passenger  traffic,  and  the  ship¬ 
ment  of  individual  goods  were  lower  than  planned  on 
river  transport. 

Air  transport  carried  53  million  passengers.  All  admin¬ 
istrations  and  production  associations  in  Civil  Aviation, 
with  the  exception  of  the  North  Caucasus  Administra¬ 
tion,  fulfilled  the  passenger  turnover  plan.  Aerial  chem¬ 
ical  operations  were  conducted  on  57  million  hectares  of 
agricultural  and  forest  land. 

In  motor  transport,  the  ministries  of  motor  transport  in 
the  Uzbek  SSR,  Moldavian  SSR,  Turkmen  SSR,  and  the 
Ukrainian  SSR  and  the  Ministry  of  Motor  Transport  and 
Highways  in  the  Estonian  SSR  did  not  cope  with  their 
quotas  for  carrying  freight. 

The  income  from  carrying  passengers  on  general  use 
buses  and  in  light  taxis  reached  3.9  billion  rubles,  or  102 
percent  of  the  plan. 

The  intensity  of  using  trucks  was  reduced:  Their  produc¬ 
tivity  in  terms  of  freight  carrying  capacity  tons  and 
average  daily  runs  fell,  and  the  percentage  of  empty  runs 
grew. 

Communications  enterprises  fulfilled  the  plan  for 
income  from  their  major  activity;  compared  with  the 
corresponding  period  of  last  year,  they  were  increased  by 
eight  percent. 

During  the  first  half  year  of  1987,  1 18  million  workers 
and  employees  were  employed  in  the  national  economy 
—  0.5  percent  more  than  during  the  first  half  of  last  year. 

The  average  monthly  monetary  pay  of  workers  and 
employees  reached  200.5  rubles  as  opposed  to  195  rubles 
during  the  corresponding  period  of  last  year.  Payment 
for  the  work  of  kolkhoz  members  in  the  public  farm 
sector  of  the  kolkhozes  was  1 47  rubles  as  opposed  to  1 42 
rubles  during  the  first  six  months  of  1986. 

In  the  production  branches  of  the  national  economy, 
new  conditions  for  paying  for  labor  were  introduced 
using  the  assets  earned  by  the  labor  collective.  At  the 
same  time,  opportunities  for  increasing  wages  at  the 
expense  of  this  source  are  being  realized  slowly.  Tariff 
rates  and  position  rates  of  pay  were  increased  for  only  1 1 
percent  of  the  total  number  of  workers  subject  to  transfer 
to  the  new  payment  conditions  during  1987. 

The  retail  commodity  turnover  of  state  and  cooperative 
trade  reached  165.2  billion  rubles  and  grew  by  3.2 
percent  when  compared  with  the  corresponding  period 


of  1 986  in  comparable  prices.  The  commodity  turnover 
plan  was  not  fulfilled  both  for  total  volume  and  without 
the  sale  of  alcoholic  beverages  in  general  by  all  the  union 
republics  except  the  Estonian  SSR. 

Positive  changes  in  the  structure  of  the  retail  commodity 
turnover  were  continued  —  the  sale  of  food  items  and 
nonfood  goods  increased  and  that  of  alcoholic  beverages 
was  reduced.  The  trade  in  potatoes  and  fruit  and  vege¬ 
table  products  was  somewhat  improved.  However,  their 
variety  remains  limited. 

The  strain  in  supplying  the  population  with  meat  prod¬ 
ucts  and  animal  fat  remains. 

Serious  shortcomings  exist  in  satisfying  the  demand  for 
industrial  items.  An  acute  shortage  of  footwear  is  being 
experienced. 

The  population  is  not  being  satisfactorily  supplied  with 
construction  materials,  especially  local  ones. 

The  population  is  being  provided  with  services  requiring 
payment  valued  at  25.3  billion  rubles;  this  is  45  percent 
of  the  annual  plan.  The  volume  of  services  has  grown  by 
10.5  percent. 

On  I  July  1987,  more  than  3,000  cooperatives  for  the 
production  of  consumer  goods,  in  public  catering  and  for 
providing  various  services  to  the  population  were  estab¬ 
lished. 

The  amounts  of  housing,  social  and  cultural  construction 
have  grown.  Due  to  state  capital  investments,  35.1 
million  square  meters  of  housing  area,  or  1 7  percent 
more  than  during  the  first  half  of  1986,  were  commis¬ 
sioned. 

The  number  of  hospitals  and  dispensary  and  polyclinic 
establishments  was  increased.  Along  with  this,  the  health 
care  material  and  technical  base,  the  quality  of  medical 
services  and  the  supplying  of  the  population  with  medi¬ 
cine  needs  considerable  improvement. 

The  workers  of  the  Soviet  Union  have  greeted  with 
hearty  approval  the  decisions  of  the  June  1987  CPSU 
Central  Committee  Plenum  on  radically  restructuring 
the  management  of  the  economy.  Preparations  are  being 
made  to  introduce  the  USSR  Law  on  State  Enterprises 
(Associations)  and  to  reorganize  the  organizational 
structure  and  work  of  management  agencies.  The  social¬ 
ist  competition  of  the  labor  collectives  to  fulfill  the  1987 
plan  successfully  and  to  greet  the  70th  anniversary  of  the 
Great  October  Socialist  Revolution  in  a  fitting  manner  is 
being  expanded. 

8802 


END